I wanted this to be a professional blog, with oxford grammar and technical topics, but my interests change frequently. I'm in a constant state of discovery, and I usually feel too humbled to assert myself as a publisher(ha) on any one topic. Maybe that's all normal.
Time seems more valuable each day. Between two jobs I can hardly find time to really probe my curiosities. I do have time for some though ;) I'm lucky enough to be working for a small ISP that allows for a late afternoon/evening work shift. My mornings are completely free, so I've passed my Series 56 and saved up some initial capital to start day trading. I went live early last week and I can't believe how eye opening this process has been.
It's late so I'll be keeping this short. I'm obviously a little nooblet when it comes to trading, but I was expecting daily number crunching and mind boggling formulas that would force me into deep calculations. The Series 56 was somewhat technical, more about the numbering of regulations than anything else.
From the bit I've read in a Mark Douglas book called 'The Disciplined Trader' I've realized the markets give a trader so much freedom, so much control over his own destiny, that the main reason for failure is not always the lack of direction, but the lack of perseverance to focus on that direction, the very root of which are subjects that I can relate to anything in life.
What I'm reading and learning to be the foundation of any successful trader is attitude, expectation, personal philosophy; things that I didn't expect to be learning at all. The book is covering simple topics about objectivity and discipline, with interesting points. For instance the markets are a reflection of yourself. The market does not show pity, it doesn't listen to you, you can't control it(at least not for long), and it's continuous. The only thing you can control is yourself and what you do. The successful trader has unlimited freedom and understands he is completely accountable.
The book refers to the market as a river, with participants making up the waves. There's a small group that consistently profit from the market, and these are individuals that know exactly what they're doing and why, they are the highest points on a wave in the middle is everyone else trying to stay as close to these people as possible, being lower and lower points on a wave going outwards from the middle with the lowest point of the wave being the trader last to jump in and out, the clueless trader.
I've always been interested in how we think and why we think the way we do, and this book brings that deduction to trading. The main idea being that once you surpass your own limitations, you'll be able to identify these limitations as a movement in the market (Easier said than done!)
There's also so many emotions that come into play in a trade. To actually analyze what these emotions are and why they come up has changed my trading style already. I'm starting to understand how a sloppy entrance into a trade can snowball into not only a bad trade, but a bad habit, and eventually a hole in my wallet. Big losses become 'psychological damage' which manifests fear. Fear being the one thing that paralyzes a poet or an artist from expressing himself through his craft. I've only read a small piece of the book but I'll have to pick a topic like fear or greed and cover them one at a time. I should probably finish at least one book first ha. Anyway that's enough for tonight!
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